Taco ell EXCLUSIVE LISTING (Ground Lease) | Charlotte, NC · NASCAR Sprint Cup races and the NASCAR All-Star Race, the Wells Fargo Championship, the NASCAR Hall of Fame, Carowinds

Taco Bell/KFC (Ground Lease) | Charlotte, NCOffering Memorandum

SHEREE STROME, CCIMASSOCIATE DIRECTOR

(404) 900-5629 [email protected]

KEELEE PETERSONASSOCIATE DIRECTOR


Actual Site

EXCLUSIVE LISTINGOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

Taco Bell / KFC (Ground Lease) | Charlotte, NC


5540 University Pointe Blvd | Charlotte, NC 28262

Asking Price $2,090,000.00 | Cap Rate 5.00%

Net Operating Income (NOI) $104,500

Rent/Month $8,708.33

Land Area 0.95+/- Acres

Tenant Name Yum! Brands, Inc.

Credit Rating S&P: BB

Stock Symbol YUM!

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NNN Ground Lease

Landlord Responsibilities None

Store Opened January 25, 2010

Lease Term Remaining 12 Years

Rent Commencement January 25, 2010

Lease Expiration January 24, 2030

Increases 10% Every 5 Years

Options Four (4), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly Rent1-5 Years - $95,000 $7,916.67

6-10 Years 10% $104,500 $8,708.30

11-15 Years 10% $114,950 $9,579.17

16-20 Years 10% $126,445 $10,537.08

Investment Highlights • Excellent retail corridor

• Absolute NNN lease

• Close proximity to University of North Carolina & I-85

• Walmart outparcel

• Corporate lease

• 10% Rent bump in 2020

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Financial Summary


About Taco BellTaco Bell Corp., a subsidiary of Yum! Brands, Inc., (NYSE:

YUM), is the nation’s leading Mexican-inspired quick

service restaurant. Taco Bell serves made-to-order and

customizable tacos and burritos, among other choices, and

is the first QSR restaurant to offer American Vegetarian

Association - certified menu items. Taco Bell and its more

than 350 franchise organizations proudly serve over 42 million customers each

week through nearly 7,000 restaurants across the nation, as well as through its

mobile, desktop and delivery ordering services.

As the leading Mexican-inspired quick service restaurant brand, Taco Bell plans

to have 8,000 restaurants by the year 2023 which they anticipate will add an

estimated 100,000 jobs nationwide.

About KFCHarland Sanders, a honorary Kentucky Colonel, founded

KFC in 1930 in the small front room of a gas station in

Corbin, Kentucky. The Colonel actively started franchising

in 1952. PepsiCo then acquired KFC in 1986, and in 1997,

they announced the spin-off of its quick service restaurants

- KFC, Taco Bell, and Pizza Hut now known as Yum! Brands,

Inc. Headquartered in Louisville, Kentucky, KFC menu includes their popular

Crispy Kentucky Grilled Chicken® and Extra Crispy™ Tenders with home-style

sides, Hot Wings™ pieces and freshly made chicken sandwiches.

KFC operates more than 17,000 restaurants in the Unites States. With nearly

15,000 restaurants in 120 countries and territories, the brand generated $16

billion in annual system sales and has grown operating profit over the last three

years at a 9% compound annual growth rate in constant currency.

Yum! Brands Snapshot# of Locations 43,000+

Stock Symbol NYSE: YUM

Revenue (2016) $6.366 BILLION

About Yum! Brands

Based in Louisville, Kentucky, has nearly 43,000 restaurants in 135 countries and territories and

is one of the Aon Hewitt Top Companies for Leaders in North America. The Company’s restaurant

brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-

style food categories. Worldwide, the Yum! Brands system opens over six new restaurants per day

on average, making it a leader in global retail development.

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Tenant Overview


Distance To:Greensboro, NC 83 miles

Columbia, SC 100 miles

Asheville, NC 134 miles

Atlanta, GA 249 miles

Atlanta, GA

Charlotte, NC

Greensboro, NC

Location Overview

Subject SiteAsheville, NC

Columbia, SC

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Subject Site

Innovation Park University

Place85

N Tr

yon

St 3

1,00

0 VP

D

University City Blvd 32,000 VPD

University City North

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Charlotte Highlights

• Taco Bell / KFC located 1.5 miles from UNC Charlotte

• 28,000+ enrollment at UNC

• Charlotte is the second largest banking center in the United States

• Growth and developement - nearly 50 restaurants, shops, service busi-nesses and recreational venues have opened or renovated since January of 2016

University City Boulevard transit-

station parking deck

University Hospital

Shoppes at University

Place

5



N Tr

yon

St 3

1,00

0 VP

D

University City Blvd 32,000 VPD

Subject Site

85

University City Boulevard transit-

station parking deck Lee’s Nails

6



N Tryon St 31,000 VPD

Subject Site

Universit

y Poin

te Blvd

Lee’s Nails

Hibachi Express

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Radius 1 Mile 3 Miles 5 MilesPopulation2016 Population 1,866 79,779 194,537

2021 Population 2,115 88,155 214,832

2010-2016 Annual Rate 1.59% 1.86% 1.89%

2016-2021 Annual Rate 2.54% 2.02% 2.00%

2016 Male Population 50.3% 49.4% 48.8%

2016 Female Population 49.7% 50.6% 51.2%

2016 Median Age 29.0 28.6 31.2

Households2016 Total Households 837 29,807 72,539

2021 Total Households 941 32,848 79,721

2010-2016 Annual Rate 1.22% 1.66% 1.62%

2016-2021 Annual Rate 2.37% 1.96% 1.91%

2016 Average Household Size 2.22 2.56 2.62

Median Household Income2016 Median Household Income $42,181 $42,066 $46,603

2021 Median Household Income $47,775 $45,840 $52,010

2016-2021 Annual Rate 2.52% 1.73% 2.22%

Average Household Income2016 Average Household Income $58,688 $57,067 $62,476

2021 Average Household Income $64,580 $61,765 $67,914

2016-2021 Annual Rate 1.93% 1.59% 1.68%

Per Capita Income2016 Per Capita Income $23,690 $21,631 $23,486

2021 Per Capita Income $25,913 $23,297 $25,367

2016-2021 Annual Rate 1.81% 1.50% 1.55%

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Demographics


Location Name

Charlotte, NCCharlotte is the largest city in the state of North Carolina. It is the county seat of Mecklenburg County and the second largest city in the southeastern United States, just behind Jacksonville, Florida. Charlotte is the third fastest growing major city in the United States. In 2014, the estimated population of Charlotte according to the U.S. Census Bureau was 809,958, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area ranks 22nd largest in the US and had a 2014 population of 2,380,314. The Charlotte metropolitan area is part of a sixteen-county market region or combined statistical area with a 2014 U.S. Census population estimate of 2,537,990.

Charlotte is home to the corporate headquarters of Bank of America and the east coast operations of Wells Fargo, which along with other financial institutions makes it the second largest banking center in the United States. Among Charlotte’s many notable attractions, some of the most popular include the Carolina Panthers of the National Football League (NFL), the Charlotte Hornets of the National Basketball Association (NBA), the Charlotte Independence of

the United Soccer League (USL), two NASCAR Sprint Cup races and the NASCAR All-Star Race, the Wells Fargo Championship, the NASCAR Hall of Fame, Carowinds amusement park, and the U.S. National Whitewater Center. Charlotte Douglas International Airport is a major international hub, and was ranked the 23rd busiest airport in the world by passenger traffic in 2013.

Charlotte is located several miles east of the Catawba River and southeast of Lake Norman, the largest man-made lake in North Carolina.

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Market Overview


Dozens of new shops, restaurants and services open or coming

by Rich Haag | Nov 7, 2016 | Economic Development,

Retail Expansion, Transit Oriented Development

This has been a year of retail, dining and services growth for University City’s main business district, and much more is coming. Nearly 50 restaurants, shops, service businesses and recreational venues have opened or renovated since January or will open soon. Many centers are fully leased or nearly

so; and a new retail center, The Pointe at University Place, is close to leasing out its 37,000 sf. Here’s the story. This year’s new arrivals For this report, we reviewed building permits and news reports, then drove through all of the retail centers along University City Boulevard and North Tryon Street. Restaurants – 20 are open or coming, including local originals such as Fusion Cafe at Grande Promenade, Famous Toastery at University Place, Ale’s University at the Terraces at University Place and Appalachia Cookies at the Target center. Six restaurants including Five Guys Burgers, City Barbecue and Dunkin Donuts have signed leases at The Pointe, the new retail center going up on North Tryon Street near the Clay Boulevard transit station. TGI Fridays recently completed a $350,000 renovation, while Showmars spent $250,000 to update its building. Earlier this year, Waffle House opened a brand-new restaurant...

Survey offers strong support for town center at University Place

by Rich Haag | Oct 11, 2016 | Business Growth, Economic Development, Job Growth in University City, Light Rail,

Retail Expansion, Transit Oriented Development

A new survey offers surprising and encouraging results about the potential for development near the Clay Boulevard

light-rail station, says Tobe Holmes with University City Partners. Among the surprises: Demand for 3-bedroom housing is “off the map,” and the highest income group in Charlotte is couples with one person working uptown and the other in University City. “I think it shows the power of University City being Charlotte’s second largest employment center, and the high quality of its employers,” said Holmes, UCP’s planning and development director. Both those numbers and a wealth of other data from the survey and other sources will help shape a development plan for the half-mile area around the JW Clay Boulevard Station and 800-space parking deck beside University Place. University City Partners and six major property...

Retail experts share plans for IKEA, Concord Mills and University Place by Rich Haag | Aug 17, 2016 | Economic Development, Retail Expansion

Three experts in University’s retail scene offered a glimpse of the future recently at the Charlotte Chamber University City Chapter’s luncheon forum on retail trends. At IKEA, store manager Chris Nace looks forward to the coming of light-rail service and the increasing number of shoppers arriving by train. At Concord Mills, mall manager Ray

Soporowski says that the many changes under way at the mall or coming soon are all about strengthening Concord Mills as the region’s top family-friendly entertainment venue. At University Place and the adjacent JW Clay Boulevard Transit Station, Tobe Holmes, planning director for University City Partners, says that the new shops going in at two light-rail parking decks and at University Place reflect the first step toward University City’s transit-powered urban future. “I always get asked, ‘Where is the city?’” Holmes told the gathering at the Charlotte Hilton University Place, a short walk from the Clay Boulevard light-rail station. “Well, the city will be right here where we are sitting.” Chamber invited group to discuss...

To read the full article’s visit https://universitycitypartners.org/category/retail-expansion/

Charlotte, NC News

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SHEREE STROME, CCIMASSOCIATE DIRECTOR


KEELEE PETERSONASSOCIATE DIRECTOR


Who Are We? We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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Taco ell EXCLUSIVE LISTING (Ground Lease) | Charlotte, NC · NASCAR Sprint Cup races and the NASCAR All-Star Race, the Wells Fargo Championship, the NASCAR Hall of Fame, Carowinds